Hubby and I both owned our own homes, he lost his through he first marriage break up, I sold mine as it was too small for our growing family.
We really want to buy a family home, but both have terrible credit histories (please judgement - feel stupid enough as it is)
He owes about 20k and I owe about 8k. We have about $70k saved though, so we plan on contacting our debts, paying them off and then what? could a loan be possible or would we have to wait 7+ years?
Do we have any hope of buying a house before the prices become too ridiculous?
Looking for advice from people who have been down this road.
Bad credit - home loans
Bad credit - home loans
Posted in:
Life Lessons, Relationships & Marriage, Money
3 Replies
Get those debts paid ASAP then the best person to speak to is a financial advisor and a mortgage broker. They can give you the correct info on your exact circumstances.
Pay off the debt now, no point in saving money if you owe money as you will be paying more interest etc the longer it takes and they usually won't lend you any more money if you aren't paying those debts. Unless you filed for bankruptcy you should be able to borrow money for a house if you have 40k left in savings and steady jobs.
Pay debts off first, then go back to saving.. We are about to consolidate our debts atm and from what I understand its 5yrs then your credit rating is cleared.. If you have cleared your debts and have a decent deposit with proof of your savings Im sure a bank would be happy to give you a loan :-)